As of the third quarter, the updated portfolio of Hotchkis & Wiley Capital Management includes 177 stocks, 19 of them new, a total value at $21.7 billion. The quarter-over-quarter turnover is 10%. The portfolio is currently weighted with top three sectors: financial services at 25.8%, technology at 13.2% and healthcare at 12.3%. The stocks bought by Hotchkis & Wiley averaged a return of 21.51% over 12 months.

One theme running through the Hotchkis & Wiley third quarter trading was about decreasing insurance companies. Here are three reductions of major insurance holdings made by Hotchkis & Wiley during the third quarter of 2013, starting with their large reduction of the health insurance company Aetna Inc. (AET.) Aetna reported a 46% increase in total revenue for the third quarter of 2013 at $13.03billion, up from $8.9 billion in the same quarter of 2012. The company’s quarterly net income was up by 4% at $518.6 million, compared to the same quarter last year at $499.2 million. Earnings of $1.38 per share, based on net income, are down 6% from the third quarter of 2012 at $1.47 per share.

Up 91% over 12 months, CNO Financial Group Inc., a life insurance company, has a market cap of $3.74 billion; shares trade with a P/E ratio of 5.90. The dividend yield is 0.60%.

CNO Financial Group reported financial results for the third quarter of 2013 with a net income of $283 million. Earnings of $1.23 per diluted share were reported in third quarter. Operating earnings were $77.2 million. The company reported a net income per diluted share of $1.23 compared to a loss of $(0.02) in the third quarter of 2012. Sales were up 8%, at $101.8 million for the reporting quarter.

Guru Action: As of Sept. 30, 2013, Hotchkis & Wiley reduced its position by 73.62%. Hotchkis & Wiley sold in the average price range of $14.27 per share.

The current share price is around $16.77, with a change from average up 18%.

Up 52% over 12 months, AIG, an international insurance company in more than 130 countries, has a market cap of $73.71 billion; shares trade with a P/E ratio of 23.80. The dividend yield is 0.20%.

AIG reported financial results for the third quarter of 2013 with net income of $2.2 billion, up from $1.9 billion in the same quarter of 2012. Earnings of $1.46 per diluted share in the third quarter of 2013 were up from the prior-year’s quarter at $1.13.

Guru Action: As of Sept. 30, 2013, Hotchkis & Wiley reduced its position by 11.51%.

Hotchkis & Wiley sold in the average price range of $47.55 per share.

The current share price is around $49.59, with a change from average up 4%.

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